Beef Buzz News
Katelyn McCullock Sees High Hay Prices in the U.S.
Tue, 14 Sep 2021 10:49:46 CDT
As pasture and range conditions continue to deteriorate, according to the latest Crop Progress Report by the USDA, suggest tight hay supplies ahead. Katelyn McCullock, director and senior economist for the Livestock Marketing Information Center (LMIC), told Ron Hays that hay prices are rising.
Right now, 45% of the continental U.S. is experiencing moderate to exceptional drought conditions, most of which is in the western half of the country. Some of the areas being hit the hardest are known to produce much of the Nation's Alfalfa Hay crop. While some of the other hay crops are produced east of the Mississippi River, a good amount is also grown in drought-stricken areas of the country. As drought conditions creep eastward, larger areas of the Great Plains, including Oklahoma, are beginning to struggle.
"Nationally, alfalfa prices hit over $200 per ton, which is important because of where we are in the marketing year," McCullock said. "There is not going to be a substantial amount of hay brought in to decrease the price, from here on out."
The season-average price of alfalfa is more than $200 per ton, with prices hitting close to that next year, McCullock said. She said low numbers of alfalfa production are partly due to high prices of competing crops, meaning farmers can get more bang for their buck by producing crops other than alfalfa. That means future alfalfa numbers likely will not see a large acreage boost, she added.
"Even if you return to normal yields, we just don't see that production number providing that much relief next year," McCullock said.
Other hay varieties are following alfalfa, McCullock said. In July, other hay prices jumped nearly $10 per ton, which McCullock called a huge increase in price. Right now, other hay is more than $150 per ton, which McCullock said was a surprise to her and the rest of the staff at LMIC.
Naturally, hay prices begin to increase as pasture and range begin to fatigue in late summer, McCullock said. She said except for a slump usually seen in Sept., she predicts alfalfa hay and other hay prices will continue to rise in the seasonal sense of things.
"It is going to be a very tough hay-price situation for livestock producers for both the rest of this year and next year," McCullock said.
She urged producers to watch the availability of hay. She said she is seeing the issue of availability affect regional areas or smaller, due to high gas and diesel prices keeping hay from traveling long distances.
LMIC provides economic analysis and market projections concerning the livestock industry through a unique partnership between state university extension specialists, USDA economists, industry associates and LMIC staff, according to the website. Click or tap here to get more information about LMIC.
Click on the LISTEN BAR below to hear more from Ron Hays and Katelyn McCullock as they talk about the high prices of hay in the U.S.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Beef News
January Cattle on Feed Report Three Percent Under Year Ago- Derrell Peel Says Tighter Supplies Will Be Around for Awhile Mon, 23 Jan 2023 05:15:04 CST
Derrell Peel Talks Latest Cattle on Feed Report- Showing Fewer Cattle on Feed, Lighter Placements and Stronger Marketings. Mon, 26 Dec 2022 08:19:00 CST
Kara Lee with Certified Angus Beef Tells Cattlemen 'Cut the Bull' Fri, 23 Dec 2022 14:30:39 CST
Beef Checkoff Utilizes Digital Marketing Techniques to Interact with Consumers Thu, 22 Dec 2022 16:02:51 CST
Beef Checkoff Research, Education, and Promotion Efforts Point Consumers to Beef Wed, 21 Dec 2022 16:15:46 CST
OSU Economist Derrell Peel Expects US Beef Export Strength to Continue Into the New Year Tue, 20 Dec 2022 08:00:35 CST
NPPC's Michael Formica Feeling Positive About Supreme Courts Upcoming Proposition 12 Decision Mon, 05 Dec 2022 10:08:27 CST
NCBA Fights to Improve Marketing Options for Cattle Producers Fri, 02 Dec 2022 09:58:28 CST
Chinese Consumers Continue to Grow Appetite for U.S. Beef Thu, 01 Dec 2022 09:23:49 CST
Merck Creates Value for Producers and Consumers with Technology and Biopharmaceuticals Wed, 30 Nov 2022 09:55:28 CST
NCBA’s Todd Wilkinson Ready to Fight Back Against Regulatory Overreach in the Cattle Industry Tue, 29 Nov 2022 10:13:33 CST
NCBA and PLC Call ESA Listing Plan of Lesser Prairie Chicken Punitive for Cattle Producers in Southern Plains Wed, 23 Nov 2022 14:51:02 CST
November Cattle on Feed Report Confirms October Pattern of Lower Placements and Tighter Cattle Numbers in Feedlots Tue, 22 Nov 2022 05:07:02 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:36:33 CST
Turning the Corner- OSU's Derrell Peel Sees Tighter Cattle Inventories into 2023 in Latest Cattle on Feed Report Mon, 21 Nov 2022 04:27:40 CST
Midterm Elections to Set Stage for What Can Be Expected in 2023 Farm Bill Mon, 07 Nov 2022 12:13:57 CST
USMEF's Dan Halstrom Remains Cautiously Optimistic about Strong Beef Demand Going Forward Thu, 03 Nov 2022 09:35:46 CDT
Economic Factors Create Hesitancy in Beef Plant Expansion Plans Wed, 02 Nov 2022 11:03:34 CDT
NCBA's Mike Simone Says Consumer Interest in Fake Meat is on the Decline Tue, 01 Nov 2022 11:41:02 CDT
Beef Remains Valued Product for Consumers as it Allows Them to Stretch their Dollar Mon, 31 Oct 2022 09:15:56 CDT
Hugh Aljoe Provides Methods to Begin and Maintain Good Land Stewardship Fri, 28 Oct 2022 09:30:13 CDT
Implement Soil Health Practices Now to Increase Forage Production when Rains Come Thu, 27 Oct 2022 15:14:07 CDT
Third Beef. It's What's For Dinner. 300 Promotes the Beef Industry on a National Level Wed, 26 Oct 2022 15:32:23 CDT
Latest Cattle on Feed Report from USDA Implies Fewer Pounds of Beef Available in 2023 Tue, 25 Oct 2022 10:17:53 CDT
OSU's Derrell Peel- Lower Placements and Smaller On Feed Number Highlight October Cattle on Feed Report Sun, 23 Oct 2022 12:45:37 CDT
Beef Checkoff Research Continues to Share Beef Sustainability Story with Consumers Fri, 21 Oct 2022 09:23:36 CDT
Beef Checkoff Research Works to Ensure Consumers Beef is a Product They Can Trust Thu, 20 Oct 2022 13:44:44 CDT
Odds for Significant Wheat Pasture Going Lower Daily in the Southern Plains Wed, 19 Oct 2022 14:35:46 CDT
NCBA Weighs in on California's Proposition 12 Tue, 18 Oct 2022 11:32:24 CDT
2022 Stockyards Steak Out Takes Oklahoma Beef to the Next Level Mon, 17 Oct 2022 11:09:07 CDT
Holding Onto Your Cow Herd a Little Longer is Projected to Pay Off, says Randy Blach Fri, 14 Oct 2022 08:14:05 CDT
Randy Blach Confident in Better Cattle Market Conditions Down the Road Thu, 13 Oct 2022 09:43:02 CDT
No Imports or Exports Would Result in a Smaller U.S. Beef Cattle Industry Wed, 12 Oct 2022 16:11:15 CDT
Derrell Peel Explains Why International Trade of Beef is Valuable Tue, 11 Oct 2022 08:19:29 CDT
Animal Agriculture Hopeful for a Win as U.S. Supreme Court Looks at California's Proposition 12 Mon, 10 Oct 2022 09:26:17 CDT